Can I be successful with BRRRR Strategy today considering current FL market cond?

Question

Hey BP, rookie investor here. I've spent the past month digging into research and learning daily. Saving up for down payment/reserves. Looking to start my journey by acquiring a 3/2 SFH or multifamily BRRR, 1400-1900 sq ft in Tampa Bay Area. It is no secret we have a lot of hurricane affected areas. I have a team that can do the rehab work and we have some decent projections but I am stuck on recalculating ARV. With the FL market showing average 60+ days on market for MLS listings plus the "boogeyman" flood insurance cost to consider, is anyone having success in moving properties? If so, are hard money lenders scrutinizing deals even more?
Any advice would be appreciated.

Cody Bergstrom · Answer

Hey Khemraj,

Great question, man. I’ll tell you this—the BRRRR method can still work if you play it smart. I’d suggest focusing on single-family homes, rather than multifamily, for your first one. Multifamily’s great, but SFHs are moving better in this market, and they’re easier to refinance with DSCR loans.

I agree with you—MLS is slow, but that just means you need to go off-market. That’s where the real value-add stuff is. Think distressed properties with cosmetic upside. Avoid trying to flip it. With flood insurance costs and a high Days on Market, a flip exit is risky right now. Go for a buy, rehab, rent, refi, and hold play. That long-term rental cash flow is what makes it safe today.

And yeah, lenders are scrutinizing deals more, especially on the DSCR side. So make sure you run your numbers tight. Get a clear understanding of what your ARV will be and what the DSCR loan will look like after the rehab.

Hope that helps, man. Sounds like you’ve got a great start—just dial it in, be conservative, and make that first one count.Let me know if you'd like to discuss the topic in further detail.

Best,

Cody BergstromGraystone Investment Group

Jorge Vazquez · Answer

Hey Khemraj—within my 20 years in Tampa real estate, I can tell you BRRRR still works, but only if you buy right, stay off-market, and stick to single-family homes for now. Cody’s right—multifamily is tougher to finance and sell, and with flood insurance and longer Days on Market, you need to focus on solid cash flow from Day 1. You’ve got a rehab crew, which is a huge advantage—just be conservative on your ARV and make sure the deal holds up under lender scrutiny. Happy to help if you want to run numbers

Lisa-Kaye Price · Answer

Hi Khemraj,

Yes, it’s definitely possible to get a DSCR loan with at least 3 months of reserves, especially if your credit score is 720 or higher. That credit score really helps secure the best terms and makes it more likely your 20% down will be enough without the lender bumping it up.

As for doing a JV with your rehab team—great idea for a first project if everyone’s clear on roles and the numbers make sense. Just make sure the partnership is structured properly from the start so there’s no confusion down the line.

Happy to chat more if you need help structuring that JV or choosing the best zip codes for STR or LTR!

– Lisa-Kaye Price

Khemraj Hamnauth · Answer

@Cody Bergstrom @Jorge Vazquez Thank you for the reply and knowledge sharing. LTR was my original thought when the market started to turn and inventory increased. Even STR, but I would need to shift my zip code focus closer to Tampa or the beach for that.
Is it possible to get a DSCR when I don't have 3-6 months in reserves? Realistically I may only have 1 month in reserve. Enough for 20% down. I'm also bouncing around the idea of going JV with two other investors (rehab team) on this first one. Thoughts?

Thanks again.

Can I be successful with BRRRR Strategy today considering current FL market cond?

Can I be successful with BRRRR Strategy today considering current FL market cond?

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